Faculty Publications

Title

Say goodbye to the 4% rule

Document Type

Article

Publication Date

11-14-2012

Abstract

If you have been studying up on retirement income, at some point you have probably come across the 4% rule. Over all of the 30-year historical periods we can identify in past U.S. data, retirees who withdrew 4% of their retirement date assets and then adjusted that spending amount for inflation in subsequent years would have always been able to avoid running out of funds.